16. Loan Applications

If you want to write a loan application into your business plan, you need to follow guidelines and rules set by SBA or Small Business Administration. You need to give an analytical note about the assets and deposited fund which have been used so far to start a business. Your loan applications must be well informative clarifying every point clearly and correctly. It is very essential section of a business plan as you can get good loan offer from banking sector or any autonomous financial institution on the strength of your holdings, stocks and property. You need to ensure good cash flow to spoon feed your business. In your loan application, you need to mention the present inventory items which are left unused or stored for future usage. For instance, if you have 100 computers in store and in past you didn’t find any scope to use them, you must mention the total value of these assets which can be pressed into service for running a software development business. Your loan application will reflect this issue. Your financial benefactor is desirous to know the financial strength of the loan applicant to run business. You should mention the total cost of infrastructure, machines and other accessories inclusive of maintenance of equipment.